Circle 33鈥檚 private development arm has formed a joint venture with social housebuilder Willmott Dixon to build affordable homes in the South-east.

The pair aim to tap into the market for affordable private homes in the four government growth areas in the region (HT 31 October 2003, page 15).

Under the deal, it is hoped that Circle 33 Lifespace, a subsidiary of the London-based registered social landlord, will take 50% of the profit from the development of about 200 homes a year. Willmott Dixon鈥檚 private housebuilding arm Widacre Homes will take the rest of the profit.

Circle 33 will also have more influence on the design and planning of the homes than it would if it just sold its land to a developer.

Chris Durkin, chief operating officer of Widacre, said: 鈥淭he key difference is that with a typical section 106 [planning gain] agreement, the RSL has no ability to influence the overall design.

As a joint-venture partner it has 50% control over the social integration.鈥�

The joint venture will kick off with a scheme to develop 234 affordable homes in Bow, east London. Durkin said Widacre expects to develop 200 to 250 affordable homes a year, turning over between 拢20m and 拢25m.

The deal comes 18 months after Willmott Dixon first launched talks with 鈥渁 number of housing associations鈥� to form a joint venture.

Source

Housing Today